New rules would authorize upstart cab competitors but clip their wings

A taxi driver loads luggage at Bush Intercont-inental Airport on Monday. Houston City Council will soon consider a measure to expand the city's taxi services.

A taxi driver loads luggage at Bush Intercont-inental Airport on...

Companies that connect riders with drivers via smartphone and tablet applications could operate legally in Houston, subject to certain conditions, under a proposal to be considered Wednesday by the City Council.

The suggested changes to Houston's taxi and limousine laws follow more than a year of discussions among city staff, taxi and limo operators and the new companies, Uber and Lyft.

Lyft's future in Houston, however, remains uncertain. A spokeswoman said the company was unwilling to use the driver background check system required by the city, believing its own procedure is better.

Local cab and limo companies sought to keep Uber and Lyft out of the Houston market, citing concerns about their safety and insurance. Cabbies said they felt unfairly burdened by some city rules that the upstart companies wanted to ignore.

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Greater Houston Transportation Company, owner of the local Yellow Cab and United Cab businesses and the city's largest taxi company, remains opposed to the proposal, spokeswoman Cindy Clifford said.

Taxis must provide trips for disabled passengers, but the same demand is not placed on the so-called transportation networking companies, Clifford said.

While Uber and Lyft can accommodate a blind or deaf patron, their ability to cater to someone in a wheelchair - especially someone who requires a wheelchair lift - is less certain.

City officials crafting the policy said cab companies, which have sued to bar Uber and Lyft from operating in Texas, voiced stiff opposition but offered few compromises or suggestions.

Tina Paez, director of the city's regulatory affairs department, said the city is working to address concerns about disabled access. Paez said officials are hopeful they can require companies like Uber and Lyft to guarantee that 5 percent of the drivers can accommodate someone in a wheelchair.

Council members, even those supportive of the cab companies, acknowledge the city's responsibility is ensuring safety without inhibiting free enterprise.

The proposed changes place specific requirements on the independent drivers and the technology companies, which connect drivers willing to ferry people around with people looking for a ride. The companies must acquire a permit and must carry $1 million in commercial liability insurance.

'Competition is good'

Council members said they remain concerned about the safety assurances but support allowing services some Houston residents want.

More than 15,000 people have signed two online petitions supporting changing rules to accommodate Uber and Lyft.

"Times change, and this is the way people get around," said Tim Wessel, 26, who said he tried Uber about a month ago with a friend.

In revising its rules, Houston built on policies in other parts of the country, then "closed a gap in some areas," said Christopher Newport, chief of staff to Mayor Annise Parker.

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As in other cities, the new companies have pressed into Houston on shaky footing. Uber and Lyft launched preemptively in February, despite city officials urging them to be patient. The companies continued discussions with the city to change the taxi laws.

"The biggest takeaway is when everyone comes together to work, we end up coming to a great resolution that is going to be best for riders and for drivers," said Chris Nakutis, a Midwest general manager for Uber who oversees operations in eight cities, including Houston.

However, a Lyft spokeswoman, Chelsea Wilson, said the city's code would still inhibit its operations, in part because the city requires a criminal background check that includes fingerprinting. Lyft's system of background checks is more thorough, Wilson said.

Changes to the taxi and limo laws also would forbid Uber and Lyft drivers from soliciting rides through means other than their online systems, and would ban them from cab stands "near any passenger depot, hotel, airport, ship or ferry landing, bus stop or station."

Rules regarding commercial use of Houston's passenger airports mean drivers for Uber and Lyft cannot pick up or drop off passengers without a city permit. Cab and limo companies, as well as airport shuttles, pay for annual permits to come to the airport, and also pay a per-trip fee.

Each driver would have to decide whether to pay $325 for the permit and $2 per-trip fees to accept airport trips.

If the City Council approves the changes, Nakutis said, Uber could operate its existing Uber X service, as well as Uber Black, a private car service that teams the company with existing local limo firms.